Plantation Stocks Defy Tariff Jitters as Malaysia's Bursa Market Slides

The Malaysian stock market was marked by a broad sell-off on Friday as investors digested fresh US tariffs on goods from 60 economies, including Malaysia, and escalating tensions in the Middle East.

However, plantation stocks proved to be the safe harbour, shrugging off the sell-off with nearly half of its Main Market constituents ending the day higher. The Bursa Malaysia Plantation Index led the only three gainers among the exchange's 13 sectoral indices, climbing 60.71 points, or 0.7 per cent, to 9,300.98.

The index was lifted by gains in SD Guthrie Bhd, Johor Plantations Group Bhd and TSH Resources Bhd, making it the day's best-performing sectoral index. Transportation and logistics followed, rising 4.23 points, or 0.42 per cent, while the Bursa Malaysia REIT Index added 1.49 points, or 0.16 per cent.

Investor sentiment turned cautious after the United States imposed a 10 per cent tariff on Malaysian goods under Section 301 of the US Trade Act of 1974 over alleged shortcomings in enforcing bans on forced labour imports. Malaysia was among 18 countries hit with the 10 per cent tariff, alongside Canada, India, Indonesia, Mexico and the United Kingdom.

IPPFA director of investment strategy and country economist Mohd Sedek Jantan said Wall Street's technology-led sell-off, coupled with the spike in oil prices, weighed heavily on investor sentiment. He expects investors to assess the implications of the latest US tariff measures on global trade, supply chains and export-oriented economies.